# In the matter of Sri Panchajanya Power Private Limited CP (IB)No.600-7-HDB-2019

> NCLT judgment dated 2020-01-21. Citation: TCN-2020-NCLT-02241. The case pertains to an application filed under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 21 Jan 2020
- **Citation:** TCN-2020-NCLT-02241
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/sri-panchajanya-power-private-limited-cp-ibno600-7-hdb-2019-2c65b446

## Summary

### Background

The case pertains to an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, by Acquaint Engineers & Infrastructure Private Limited (Financial Creditor) against Sri Panchajanya Power Private Limited (Corporate Debtor). The Financial Creditor claimed that the Corporate Debtor defaulted on a loan agreement entered on 08.11.2012, where the Financial Creditor agreed to lend Rs. 30,00,000 at an interest rate of 18% per annum. The Financial Creditor disbursed Rs. 20,22,953 as of 10.04.2019. The Corporate Debtor acknowledged the debt on 07.01.2015 and 18.04.2019 but failed to repay the principal and interest.

## Facts

Acquaint Engineers & Infrastructure Private Limited (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 against Sri Panchajanya Power Private Limited (Corporate Debtor). The Corporate Debtor was engaged in the business of power generation in Maharashtra. The Financial Creditor and Corporate Debtor entered into a Loan Agreement on 08.11.2012, where the Financial Creditor agreed to lend Rs. 30,00,000 at an interest rate of 18% per annum. The Financial Creditor disbursed Rs. 20,22,953 as of 10.04.2019. The Corporate Debtor failed to repay the principal and interest despite reminders from the Financial Creditor. The Corporate Debtor acknowledged the debt on 07.01.2015 and 18.04.2019. The total amount due, including

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## Issues and analysis

### Issue 1: Whether the Financial Creditor has met the requirements for initiating Corporate Insolvency …

**Ratio:** Section 7 of the Insolvency and Bankruptcy Code, 2016 allows a financial creditor to

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**Reasoning:** The Adjudicating Authority was satisfied that the Financial Creditor had provided

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**Interpretation:** Section 7 is interpreted to mean that if a financial creditor demonstrates a

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**Application:** The Financial Creditor provided the Loan Agreement, disbursement details, and

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## Parties

- **Judges:** K. Anantha…; BINOD KUMAR…
- **Appellants:** Acquaint Engineers…
- **Respondents:** Panchajanya Power…

## Timeline

- **2012-11-08 — Loan Agre…**: The Respondent and the Financial…
- **2014-12-25 — Reminder…**: Reminder Letter issued…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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